Delray Delays Vote On Developer

October 2, 2002|By Leon Fooksman Staff Writer

DELRAY BEACH — Developers of a complex of homes and commercial space that is planned for a neglected business corridor said that by Tuesday, they had lined up all but $150,000 needed to start their project.

They turned to the City Commission to cover the shortfall. But city officials had pressing questions about the proposed agreement, so they will hold off on a decision until Monday.

The requested money, which was supposed to come from waivers in building permits, won't kill the $17.5 million Atlantic Grove project on West Atlantic Avenue because a lending agency has agreed to loan the developers the money. The developers are short the $1.5 million needed to purchase the 4.6 acres from the city's Community Redevelopment Agency and begin construction.

If the city supplies the money, it would go toward offsetting the loan from the lending agency, West Palm Beach-based Local Initiatives Support Corporation.

The project is seen by the city as a catalyst for redevelopment along a 12-block stretch of West Atlantic Avenue from Interstate 95 to Swinton Avenue. It has become controversial in recent months because its homes went from being marketed to working-class families earning $35,000-$49,000 a year to families earning more than $60,000 a year.

Initially, the developers planned to sell 62 townhouses from $114,990 to $119,900, and to lease 72,000 square feet of commercial space for about $15 per square foot. But after adjusting construction costs, they have decided to sell 55 townhouses, many from $159,000 to $225,000, and to sell 42,000 square feet of retail space, instead of leasing it, for $170 to $200 per square foot.

The project is structured so that about half the money needed to buy the land comes from a for-profit company and the other half is split between two nonprofits.

The for-profit company came up with its share of the money, but the nonprofits needed the city's support to pay for their contribution, said Annetta Jenkins, senior program director for the lending agency.

The nonprofits have gotten a $600,000 commitment from county government, but it still wasn't enough. The county money comes with the requirement that Delray Beach will offer the money or provide resources to the project.

City Manager David Harden discouraged the commission from waiving the $150,000 in permits because such a move would be unfair to developers who had bid for the CRA land two years ago.

Commissioner Jeff Perlman went even further in opposing the waiver: "We don't have the money," he said, citing this year's budget constraints.

It wasn't clear on Tuesday night which proposals would be on the table when the commission and the developers meet at 8 a.m. on Monday in City Hall.

Leon Fooksman can be reached at lfooksman@sun-sentinel.com or 561-243-6647.